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Experience The Difference

The Benefits Of
Borrowing With Groundfloor

  • No minimum transactions experience required
  • Five year lookback for experience
  • Minimum property value of $50,000
  • Minimum credit score of 640​
  • 12 and 18 month terms
  • No hard credit pulls
  • Origination points and fees financed into loan
  • Loan sizes from $75,000 to $750,000
  • True deferred payments — no payments until repay
  • Up to 70% loan-to-after repair value
  • Interest accumulates only on dispersed funds

The Professional’s Choice

The Preferred
Private Money Lender

Are you a real estate professional? Are you a builder? Are you an investor that wants to build an investment property?

If so, then you need access to the right private money lender. That’s why we are the preferred choice for many real estate professionals.

what you need to know

New Construction Frequently Asked Questions

Learn more about new construction loans with some of Groundfloor’s frequently asked questions.

Is the interest charged on the entire amount or just the funds drawn?

The interest charged is just on the drawn funds.

Do I have to have my building permit in order to close?

Yes, we require the permit to be in hand. However, we can consider a land-only loan to help you secure the property during the permitting process.

Do you need experience to get a new construction loan?

While you don’t need to show experience in new construction, you need to show experience with 4+ real estate projects (rehabs or rentals) over the past 5 years.

Can you do development loans?

No, we do not have funding mechanism for horizontal build costs.  Ideally, we look for infill scenarios.

What is a new construction loan for builders?

A new construction loan is a type of financing designed specifically for individuals or businesses looking to build a new structure or remodel an existing one by taking it down to the foundation.

This loan offers interest only on disbursed funds and a deferred payment program.

How are these new construction loans structured?

Our new construction loans operate slightly differently than our renovation loans. Borrowers must have experience with a minimum of 4 real estate projects in the last 5 years. These projects can be flips, rentals, or new construction. The loans fund different percentages of the construction based on the tier in which the borrower falls.

 

We also request additional documents for this type of loan. These documents include a bank statement, a general contractor license, and the contract you have with your general contractor. While they are not part of the loan, we still need to confirm there is a contract in place.

 

Once a loan is approved, the borrower is able to access the full amount of the loan in a series of draws. Interest accrues on the loan as it is used.

What is the advantage of investing in new construction loans?

As is the case with all loans we offer, rates are risk-adjusted based on the creditworthiness of the borrower and the value of the collateral relative to the loan balance.

 

In general, we have found that borrowers who take out a new construction loan are more experienced and have a greater financial capacity than a typical renovator.

Furthermore, new construction projects overall are less risky than a renovations because they’re essentially a clean slate — often with renovation projects, you run into issues that you weren’t expecting; with new construction, you’re more aware of all contingencies because you’re starting from the ground up.


Finally, the current market for these types of loans is wide open. For the most part, builders have to turn to banks or larger non-bank lenders in order to receive loans for their new construction projects. True to our mission of creating a radically open, decentralized, and accessible capital market, we saw an opportunity for Groundfloor to step in and change the game.

Take The First Step

Ready To Get Started With

New Construction Loans?

Already a Groundfloor customer? Follow the link below.

Click here

for new Groundfloor customers

new construction
 pre-application form

© 2024 Groundfloor. All rights reserved.

A copy of these materials may also be obtained for free on the SEC’s website at www.sec.gov.

* 10% returns based on previous 8 years of historical returns and current available investments, ranging from 4% – 14%, barring any losses.
PLEASE SEE OUR OFFERING CIRCULARS BELOW:

PLEASE SEE OUR OFFERING SUBSCRIPTION AGREEMENT BELOW:


OFFERINGS FOR SECURITIES UNDER REGULATION A ON THIS WEBSITE ARE CURRENTLY OPEN TO ALL US RESIDENTS WHERE THE ISSUER HAS FILED STATE NOTICE.
The information on this website does not constitute an offer to sell the limited recourse obligations (or “LROs”) identified herein in any state or jurisdiction in which the issuer is not qualified to do so. Securities are offered and sold under Regulation A of the Securities Act of 1933 (“Regulation A”) only to investors who are residents of the states in which Groundfloor Finance Inc. (“Groundfloor ”), or one of its affiliates has either qualified an offering statement under Tier 1 of Regulation A or made notice of its intent to offer and sell securities under Tier 2 of Regulation A. Groundfloor, or its affiliates, may also offer securities to accredited investors. Investors who believe they qualify as accredited investors may access additional information about these offerings here .
The information on this website does not constitute an offer to sell the limited recourse obligations (or “LROs”) identified herein in any state or jurisdiction in which the issuer is not qualified to do so. Securities are offered and sold under Regulation A of the Securities Act of 1933 (“Regulation A”) only to investors who are residents of the states in which Groundfloor Finance Inc. (“Groundfloor”), or one of its affiliates has either qualified an offering statement under Tier 1 of Regulation A or made notice of its intent to offer and sell securities under Tier 2 of Regulation A. Groundfloor, or its affiliates, may also offer securities to accredited investors. Investors who believe they qualify as accredited investors may access additional information about these offerings here . Groundfloor or one of its affiliates has filed offering circulars and post-qualification amendments (or “PQAs”) (including supplements to such filings) with the Securities and Exchange Commission (the “SEC”) covering the current offering of LROs. An investment in LROs entails risk of loss, and you may lose all or part of your investment. Each investor should carefully consider the risk factors and other information discussed in the qualified offering circulars/PQAs (and current supplements, if any) before purchasing LROs. Some statements in the offering circulars/PQAs and on this website may contain forward-looking statements and are based upon current expectations, plans, estimates, assumptions, and beliefs that involve numerous risks and uncertainties. Although Groundfloor believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, actual results and performance could differ materially from those set forth in the forward-looking statements. You should consult with your own attorneys, accountants, and other professional advisors prior to making an investment. The information on this website does not constitute an offer to sell or a solicitation of interest in any LROs that may be qualified in the future. No money or other consideration is being solicited with respect to any LROs that have not been duly qualified, and if sent in response, will not be accepted. No offer to buy any LROs that have not been duly qualified can be accepted and no part of the purchase price can be received until an offering circular/PQA covering such LROs has been qualified by the SEC. Any such offer to buy unqualified LROs may be withdrawn or revoked, without obligation of any kind, at any time before notice of its acceptance is given after the date of qualification. An indication of interest in our offerings involves no obligation or commitment of any kind. The information contained in the Offering Circular and offering materials presents a general summary of the business and the purpose and principal business terms of an investment in LROs. This summary does not purport to be complete and is qualified in its entirety by reference to the more detailed discussion contained in the offering circulars/PQAs. Articles or information from third-party sources outside of this domain may discuss Groundfloor (or its affiliates) or relate to information contained herein, but Groundfloor and its affiliates do not approve and are not responsible for such content. Hyperlinks to third-party sites, or reproduction of third-party content, do not constitute an approval or endorsement by Groundfloor or any of its affiliates of the linked or reproduced content. Neither the SEC nor any state securities commission or regulatory authority approved, disapproved, endorsed, or recommended the merits of the offering described in the offering circulars/PQAs or reflected on this website. Groundfloor’s services do not constitute “crowdfunding” as described in Title III of the Jumpstart Our Business Startups Act (“JOBS Act”).